Dalhousie’s Agri-Food Analytics Lab is not surprised by Tim Hortons’ plans to raise its coffee prices for the first time in three years.
Tim Hortons says the price of a cup of coffee is going up by 1.5 per cent – or about three cents per cup.
Professor Sylvain Charlebois says coffee futures are at around US$3.80 a pound right now, which is about 50 per cent more than the five year average. That’s the result of production problems around the world including in Vietnam, and in Brazil which is being affected by La Niña.
Charlebois says he was expecting the increase in prices months ago.
“We were expecting Tim Hortons to make an announcement at some point. I thought that the announced increase was actually quite modest,” said Charlebois.
